ASH to invest in Heyfield sawmillSustainable Hardwoods (ASH), which bought the former Gunns Ltd. Heyfield hardwood sawmill in Victoria, Australia, this past spring, has short- and longer-term plans for investing in the operation, reported The Sydney Morning Herald on 13 August.
In the shorter-term, the company, which is owned by three private investors, plans to increase output by investing in the latest technology and adding a new manufacturing line. The plant’s equipment is 10 years old, said ASH CEO Vince Hurley.
The longer-term plan is to build a new dry mill, he said, noting that ASH has “reasonably long-term licenses,” and that the Victoria government is enacting steps to make long-term contracts possible, which will provide sustainable opportunities, the Herald reported.
ASH paid AU$29 million for the Heyfield mill. Gunns had paid AU$89 million for it in 2009, but made no improvements and lost the timber supply when it failed to pay VicForests for the resource.
The Heyfield operation buys Victoria Ash timber from VicForests and is certified by the Programme for the Endorsement of Forest Certification (PEFC) through the Australian Forestry Standard. The Heyfield operation can process 155,000 cubic meters of hardwood timber annually and has a turnover of AU$55 million, The Sydney Morning Herald reported.
Source: Industry Intelligence Inc, The Sydney Morning Herald
Copyright 2004-2013 © Innovatek Ltd. All rights reserved.